The COVID-19 pandemic is the cause of a number of countries competing to seek debt to save the economy. In fact, according to the articles
I read, more than 100 countries applied for loans to the International Monetary Fund (IMF). No wonder global debt has increased by 356%,
especially if this year the spread of the COVID-19 pandemic cannot be stopped. I can be sure that the global debt will be even higher next year.
Because the government will do all kinds of ways to restore the economy. The key is that the corona virus must be stopped as soon as possible,
so that global debt does not continue to increase.
Topic: Global debt soars to 356% of GDP - page 3. (Read 488 times)
Who do they owe all this debt to?
That was my question too, I couldn't even begin to fathom who does the world owe money. Maybe there really is an extraterrestrial race and the global leaders asks for some money and now they owe this extraterrestrial race and in exchange, they can go to our planet without a visa 
. Kidding aside, this is not the most threatening thing because global debt as far as I know is not something that is being loaned for the purpose of getting it paid back, the people who loaned this are more interested on favor rather than the loan being payed with interests. 
Who do they owe all this debt to?
Is the sum of all fiat money zero or negative?
Is the sum of all fiat money zero or negative?
The whole world live in debts and this normal while you have money to pay it
The world's debt-to-GDP ratio rose to 356% in 2020, a new report from the Institute of International Finance finds, up 35 percentage points from where it stood in 2019, as countries saw their economies shrink and issued an ocean of debt to stay afloat.
Why it matters: The increase brings numerous countries, including the U.S., to extreme debt levels, well beyond what economists have called untenable in the past.
If Covid does not end soon, the amount of debt will increase to records degrees. Poor countries will get loans to pay for vaccines and it will make their poor economies worse. In financial markets, there is a huge boom. Each index records its ATH price and it seems that something undesirable will happen. If that happens concurrently then there will be a great depression. However, we hope that these events will not happen. Why it matters: The increase brings numerous countries, including the U.S., to extreme debt levels, well beyond what economists have called untenable in the past.
It's bound to happen, COVID and literally hundreds to thousands of companies closing due to lack of workforce and the fact that lack of funding. Now provided that small companies recover after this surely the economy is bound to bounce back. So the best move for each country is to ensure that the number of new cases is minimized and prevented as well as to ensure that internal economy is at least kept in check.
that news is really not surprising anymore. global population experienced this pandemic crisis for the first time in most of our lives. definitely, there will be problems that we will encounter here. but give it few years, and a lot will recover. this situation is not forever esp once this vaccine has been rolled-out to large percentage of population.
at least humanity is still alive and not been wiped out. so we still have hope here.
Well Germany for example was paying back its debt before the Corona crisis, and at a rapid rate. Granted, it's more of an exception than the rule, but if really debt becomes a problem, but the economy is doing OK, I could see a global, concerted effort to reduce government debts.
It was crazy that Trump was making huge deficits despite the US economy being OK, the first 3 years of his term...
It was crazy that Trump was making huge deficits despite the US economy being OK, the first 3 years of his term...
To be honest these numbers aren't too bad. When you take a loan to buy a home, the loan is often 5 years of your total income, sometimes more. So that comes out at 500% debt, yet it doesn't scare us.
You have a point, however when you take a private loan like that you are expected to pay it and over time you're going to see that debt ratio being reduced as you keep paying the loan, when was the last time that governments reduced the level of debt that they had in a significant manner? Because I don't remember it, governments are borrowing money at a rate that is unsustainable and it doesn't seem as if they have any kind of intention of ever paying up those debts.Which means that a new economic crisis that affects the whole world is basically inevitable, this is why people should prepare themselves, but this time this crisis is going to be different, most of the time people save their fiat expecting to protect themselves that way but I really think that all of those people that choose fiat in order to protect their wealth are going to be destroyed, which is why you need to find a store of value and whether you use real estate, precious metals or cryptocurrencies is not really that important, what matters is that a significant amount of your wealth is invested in one of those assets so you do not lose everything.
It's bound to happen, COVID and literally hundreds to thousands of companies closing due to lack of workforce and the fact that lack of funding. Now provided that small companies recover after this surely the economy is bound to bounce back. So the best move for each country is to ensure that the number of new cases is minimized and prevented as well as to ensure that internal economy is at least kept in check.
The FED has printed 40% of its total money supply last year. What does that tell you? Few days ago there was another news showing the Chinese ships arriving at the California bay. Hundreds of them.
The US is buying everything from China and selling their currency in return which they print for free.
Anyone knows a bit of math can see how that's going to end.
They should hang whoever came up with the idea of outsourcing their production to China.
The US is buying everything from China and selling their currency in return which they print for free.
Anyone knows a bit of math can see how that's going to end.
They should hang whoever came up with the idea of outsourcing their production to China.
Honestly I feel like this was already a problem, of course numbers weren't this drastic but it was already a problem, it never made any sense at all and it still makes no sense that there is this much debt. Of course the debt is for the future, most of that debt is not "should be paid right now" debt, most of it is "debt that will be paid later" debt and that is why people keep postponing it time and time again which is going to eventually boil up and blow up.
Mortgage crisis was nothing compared to this debt one, eventually one day banks will collapse under heavy debt and all other places that have debt will just find a way to keep not paying without anything happening to them. That is why I think it is quite important that we do not end up living under debt ourselves, but realize that debt is not as bad as you might think considering the whole world is in an unpayable debt.
Mortgage crisis was nothing compared to this debt one, eventually one day banks will collapse under heavy debt and all other places that have debt will just find a way to keep not paying without anything happening to them. That is why I think it is quite important that we do not end up living under debt ourselves, but realize that debt is not as bad as you might think considering the whole world is in an unpayable debt.
As sad as it has been seeing the national debt of the United States growing larger and larger over time, it sure has been about the best thing to happen to bitcoin that's possible. We continue to print money as if it is a never ending source without and consequences at all, but as we all know there comes a point where enough is enough.
The F35 being mentioned here is a big one for me..we've got to stop wasting so much on war..it's just not necessary.
The F35 being mentioned here is a big one for me..we've got to stop wasting so much on war..it's just not necessary.
I don't have any debt right now. I feel I'm missing out, if there is some inflation in the end, it's better to have some debt at a low fixed rate, then inflation will basically pay back your debt. If you're fiat rich on the other hand, inflation will eat your savings.
So sad on that matter, maybe I shouldn't save fiat if that's the case that I'll be storing money at the bank due inflation. This is the real thing about having savings, much better having our own vault security in order to secure our funds rather than entrusting that money on some banks. But if you're with crypto investment like bitcoin, huge profit awaits but in long term basis.
I don't have any debt right now. I feel I'm missing out, if there is some inflation in the end, it's better to have some debt at a low fixed rate, then inflation will basically pay back your debt. If you're fiat rich on the other hand, inflation will eat your savings.
Yeah and then also the government encourages people to get more loans at 0%. These things are only going on with the financially stable countries like USA. Stimulus is not enough ! Till the job creation is not going to happen these things would cause the general public to loose a lot of money in the long run. Even if there is 0% interest then also without jobs how do you expect someone to pay ! These loans would be passed on to their other family members and the COVID insurance plus the healthcare is also forcing the people to take such loans but what one doesn't know is :
0% loans are just given to limited people, most of them are asked to wait or to take more like 8-10% ones.
The stock market have also collapsed which does mean that people did loose a lot !! Bitcoins is the only asset which is outperforming during the COVID Pandemic. Let's see how the government handles this now. They should at least get rid of the student loans.
^ but it's not available for everyone that's the whole point makes me wonder how they would pay back in the future.
0% loans are just given to limited people, most of them are asked to wait or to take more like 8-10% ones.
The stock market have also collapsed which does mean that people did loose a lot !! Bitcoins is the only asset which is outperforming during the COVID Pandemic. Let's see how the government handles this now. They should at least get rid of the student loans.
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^ but it's not available for everyone that's the whole point makes me wonder how they would pay back in the future.
There are signs of a financial bubble everywhere.
Half of the world economy has stopped yet stocks are at their ATH's.
I checked a few shit stocks that exploded during the dotcom bubble and went to almost "0" afterwards and never recovered for 20 years. You know what I've found?
They are at their ATH's again.
Half of the world economy has stopped yet stocks are at their ATH's.
I checked a few shit stocks that exploded during the dotcom bubble and went to almost "0" afterwards and never recovered for 20 years. You know what I've found?
They are at their ATH's again.
If stocks die, everything dies. Forget bitcoin or anything else, we'll be back to agriculture. If your country is alright with socialism during a disaster then you're fine- if not it might be problematic.
not everything depends on the stock market and even in disaster scenarios not all stocks dump. in fact in the previous recession when stock market was crashing there were some shares that were performing very well.
we don't know how bitcoin comes into all of this though and i think people who make certain claims are missing this fact. there is actually a very good chance that bitcoin would be among those that aren't affected by such doomsday scenarios.
each country accumulates debt to stabilize the conditions of a country during a pandemic. Well, this refers to the data base, which when the increase in debt value continues to soar, it will have an impact on the country in the next 10 years or even more. So we can analogize a baby who is born carrying a debt that is borne by the state. Suppose a country owes 100 billion: number of citizens paying taxes x annual ratio = ................................
Isn't this impact very heavy. while the IMF still prints banknotes and circulates them around the world saying "let's borrow, come on, we'll lend you whatever money you need" .. LOL
Isn't this impact very heavy. while the IMF still prints banknotes and circulates them around the world saying "let's borrow, come on, we'll lend you whatever money you need" .. LOL
To be honest these numbers aren't too bad. When you take a loan to buy a home, the loan is often 5 years of your total income, sometimes more. So that comes out at 500% debt, yet it doesn't scare us.
I am concerned when countries get into debt because the economic crisis begins to tighten strongly. But thank God, in any part of the world there are working hands that love their countries and blessed with a prodigious land that in the end can reap abundant fruits to get out of debt.
I always think that there are difficult moments and other very good ones. Hopefully in this new time we can see everything we have sown and that the most vulnerable people reach benefits.
I always think that there are difficult moments and other very good ones. Hopefully in this new time we can see everything we have sown and that the most vulnerable people reach benefits.
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